Gold eases as investors await Fed's policy decision

Gold slipped to a near two-week low on Wednesday as US Treasury yields firmed while investors awaited policy signals from the US Federal Reserve.

Spot gold edged 0.2% lower to $1,772.53 per ounce by 10:28 a.m. EDT (1428 GMT), after dipping to its lowest since April 16 at $1,762. US gold futures fell 0.3% to $1,772.60.

"There's just a consolidation here but you're going to see the Fed affirm the dovish (stance) and that should keep gold fairly stable," said Edward Moya, senior market analyst at OANDA.

Fed Chairman Jerome Powell is expected later on Wednesday to reaffirm easy monetary policy will continue for a prolonged period.

"The marketplace will closely scrutinize the Fed's inflation outlook and any comments on the future path of monetary policy," Kitco Metals senior analyst Jim Wyckoff said in a note.

Benchmark US 10-year Treasury yields were steady having earlier jumped to a two-week high.

"If the Fed gives some direction to yields, there could be a significant move for gold. Otherwise, expect gold to remain in the $1,750-$1,800 range," said Carlo Alberto De Casa, chief analyst, ActivTrades.

Analysts have cut their gold price forecasts, with many believing an economic recovery could impede the metal's return to last year's record highs, a Reuters poll showed.

Goldman Sachs, however, sees gold at $2,000 an ounce over the next six months and said it was too early for bitcoin to compete with gold for safe-haven demand.

Among other precious metals, palladium fell 0.6% to $2,925.73 per ounce, after hitting an all-time high of $2,962.50 on Tuesday.

Silver shed 1% to $25.97 per ounce, after reaching a low since April 21 at $25.80.

Platinum dipped 1.3%, to $1,212.44.